Cars are continually becoming smarter as automakers integrate more advanced safety and semi-autonomous systems into their products every year. All types of vehicles, including those with combustion engines, are incorporating these features. However, electric vehicles (EVs) are uniquely suited for advanced technology, as they're built on software systems.
That's creating a huge opportunity for artificial intelligence (AI) leader Nvidia (NVDA -0.77%). The company has been building automotive tech solutions for years, and as electric vehicles become more commonplace, a massive opportunity is coming into focus for Nvidia's artificial intelligence tech to power the next generation of EVs.

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How Nvidia's powering next-gen vehicles today
For years, Nvidia developed technology platforms and systems for vehicles in anticipation that one day they'd become an integral part of advanced vehicle systems. Those days are already here.
Nvidia's artificial intelligence platform DRIVE AGX and its AI vehicle processors DRIVE Orin and DRIVE Thor are being used by leading electric-vehicle companies to enhance in-vehicle software, safety systems, and semi-autonomous capabilities.
For example, the world's largest EV maker, BYD, partnered with Nvidia several years ago to use Nvidia's centralized computing platform to bring "safe and intelligent vehicles to market." Similarly, China-based Xiaomi EV built its SU7 sedan with Nvidia's DRIVE Orin configuration for highway driving functions and uses AI to make navigation decisions in unknown driving environments.
American companies are tapping into Nvidia's DRIVE technology, as well. Electric-vehicle specialist Rivian uses it to enhance its safety features and driving technology, and also uses Nvidia's RTX Pro GPUs to power artificial intelligence and virtual reality for vehicle design.
Most recently, General Motors announced a new partnership with Nvidia, saying that it has used the tech giant's graphics processor for AI training in the past -- and is now expanding its partnership to include in-vehicle hardware and even assisting with the design of automotive plants and operations. Nvidia CEO Jensen Huang said of the partnership, "The era of physical AI is here, and together with GM, we're transforming transportation, from vehicles to the factories where they're made."
This is just scraping the surface of Nvidia's hardware and software integration into electric vehicles and semi-autonomous safety systems. In all, more than 20 automakers use Nvidia's processors and DRIVE platform to help power their next-generation vehicles.
The next-gen vehicle opportunity is massive for Nvidia
One of the biggest opportunities for Nvidia from next-gen vehicles is for automakers to increasingly use it to power autonomous vehicles. GM made this point clear when talking about its future vision for its own vehicles and its expectation to launch personal autonomous vehicles, or PAVs, in the future.
GM's senior VP of Software and Services Engineering Dave Richardson said, "The work we're doing with companies like Nvidia adds agility to our already highly sophisticated vehicle design, engineering, and manufacturing processes."
Nvidia announced a new full-stack DRIVE autonomous vehicle platform that's in full production now, with plans to deploy into intelligent transportation systems soon. In short, Nvidia's tech could help make these new autonomous systems a reality. And the opportunity is massive.
"We believe automotive is a trillion-dollar opportunity for Nvidia," said Ali Kani, Nvidia's vice president and general manager of automotive.
The company's not quite there yet. Its automotive revenue was just $586 million in Q2, though it did improve by an impressive 69% from the year-ago quarter. But some estimates put the projected revenue for autonomous vehicle platform providers near $2.6 trillion globally by 2030 -- making this a huge opportunity for Nvidia.
Worth the wait
Most new vehicles, electric and otherwise, have some level of semi-autonomous systems built into them these days. As these features become more commonplace and companies expand their in-vehicle technologies for EVs, Nvidia's current partnerships and tech make it well-positioned to benefit from the growth.
Considering that Nvidia is already a dominant artificial intelligence company that's tapping into huge demand for AI data centers, investors can benefit from owning Nvidia stock now -- while they wait for the company to benefit from powering next-gen vehicles in the coming years.